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Europe's Defense Tech Startups Surge Amid M&A Wave

10/14/2025

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Story summary
  • Europe's defense tech sector is seeing a surge in mergers and acquisitions as startups seek to bolster capabilities amid rising government defense spending.
  • Helsing and Quantum Systems are actively acquiring firms to expand their technology and product offerings.
  • In 2025, defense tech startups raised €3.5 billion, up from €1.85 billion in 2024.
  • The United Kingdom and Germany are increasing defense budgets, creating lucrative opportunities for startups.